RBA's cash rate 'likely to stay on hold'

THE Reserve Bank of Australia is expected to keep the cash rate unchanged at three per cent on Tuesday.

None of the 13 economists surveyed by AAP last week expect the RBA to cut its interest rate at its board meeting, though most say rate cuts are on the cards this year.

Expectations of further rate cuts have grown in the past month following a rise in the unemployment rate and disappointing home building approvals figures, as well as news inflation remains under control.

National Australia Bank senior economist David de Garis believes the RBA will do more to stimulate the economy this year and is expecting two rate cuts by December.

But he thinks the central bank is likely to wait until June to cut again.

That would allow them to see another round of employment and retail sales figures as well as key capital expenditure figures for the March quarter - a key indicator on when investment in the mining industry will peak.

"There's quite a lot of water to flow under the bridge before June, it doesn't sound like they are in a super hurry right now so they might be inclined to hold off for another month," he said.